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One possible group would be a consortium of parties that are interesting to transact with. Say Paypal decided to mess around, they might have a blacklist.

People that received tainted coins could repudiate them with high fee transactions to invalid addresses (so that most of the coins go back into the network as mining fees). I guess 'invalid address' is the wrong language, but you get the idea, an address with no private key.



Bitcoin was supposed to help fix problems like PayPal holding payments. This seems to make bitcoin vulnerable to it.




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